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  11. Change the base currency

Change the base currency

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Caution: This routine should not be run until the exchange rates have been fixed for the currencies within the EMU.

The routine to change base currency consists of the following steps:

  • All exchange rate values for historic transactions are converted.
  • All exchanges rates in the Exchange rate table are converted.
  • The Base currency field is automatically updated in Work with companies.

Calculation example:

Old base currency BEF
New base currency EUR
Exchange rate 1 EUR = 39.19254 BEF
Exchange rate for DEM before conversion 18.15
Exchange rate for DEM after the conversion, i.e.    18.15    = 0.4630983
39.19254
  1. Make a complete backup of the company database library. To find the company file library, select the Work with companies menu item to choose the appropriate company code and application code. (This is to be used for audit purposes.) This is a good safety precaution, so that the database can be re-installed, if needed.
  2. Select the Change base currency and/or reverse exchange rates menu item.
  3. You access the Currency conversion panel. The following information is applicable:
    4. Actual base currency
    Displays the current value of the Base currency field defined in the Work with companies.
    New base currency
    Enter EUR, i.e. the currency code for the new base currency.

    Click OK.

  4. You access the Currency conversion panel once again with additional information for you to complete. You should now enter the relationship, i.e. the conversion factor between the old base currency and the new:
    5. 1 BEF = _______________________ EUR
    Enter the conversion factor between the new and old base currencies as:

    1 old base currency = to x new base currencies

    You may leave this field blank and enter the relation in the field below instead.

    1 EUR = _______________________ BEF
    Enter the conversion factor between the new and old base currencies as:

    1 new base currency = to x old base currencies

    If you follow the calculation example above, then you would enter 39.19254 here. You may leave this field blank and enter the relation in the field above instead. This is, thus, the type of conversion factor applicable for EMU installations.

    Caution: It is mandatory to enter a value in one of the two fields described above.

    Click OK when you have made the selections. When the conversion run has completed the system will inform you by sending the following message: “Job TRIANGLE completed normally“.

  5. Review and maintain the currencies in Work with currencies, if applicable. Set the EMU currency field to YES for all currencies that are a part of the EMU and therefore also are eligible for fixed exchange rates.
  6. Review and maintain the exchange rates in the Exchange rate table. The following currencies should be expressed with a fixed exchange rate: (See Enter fixed exchange rates for further information.)
    • The System currency. Note: If the system currency is the same as the base currency the exchange rate for the system currency should be entered as 1.0000000.
    • The Reporting currency
    • All currencies with the EMU currency field set to YES in Work with currencies.

Note: The system always requires a fixed exchange rate for the above stated currencies. If a fluctuating exchange rate anyhow is defined, then the system will ignore this. Therefore, the prior defined exchange rates may exist in the Exchange rate table but can, if desired, be deleted.

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